Assume that you are responsible for maintaining Keflavik’s project portfolio. Name some key criteria that should be used in evaluating all new projects before they are added to the current portfolio. In recent years, Keflavik Paper Company has been having problems with its project management process.

Several commercial projects, for example, have come in late and well over budget, and product performance has been inconsistent. A comprehensive analysis of the process has traced many of the problems back to faulty project selection methods.

Keflavik is a medium-sized corporation that manufactures a variety of paper products, including specialty papers and the coated papers used in the photography and printing industries. Despite cyclical downturns due to general economic conditions, the firm’s annual sales have grown steadily, though slowly. About five years ago, Keflavik embarked on a project-based approach to new product opportunities. The goal was to improve profitability and generate additional sales volume by developing new commercial products quickly, with better targeting to specific customer needs. The results so far have not been encouraging. The company’s project development record is spotty. Some projects have been delivered on time, but others have been late; budgets have been routinely overrun; and product performance has been inconsistent, with some projects yielding good returns and others losing money.